CJ CheilJedang and HDC Hyundai EP Establish White Bio Joint Venture

CJ CheilJedang's Fermentation and Refinement Technology
Combined with Hyundai EP's Compounding Capabilities

Choi Eun-seok, CEO of CJ CheilJedang (right), and Jeong Jung-gyu, CEO of HDC Hyundai EP (left), participated in the signing ceremony of the main contract for the bio compounding joint venture.

[Asia Economy Reporter Lim Hye-seon] CJ CheilJedang is establishing a bio-compounding joint venture (JV) with HDC Hyundai EP, the leading polymer compounding company in Korea. Through this, the company plans to actively diversify its white bio business. Compounding refers to the production process of mixing two or more plastic materials in an optimal blend.

CJ CheilJedang announced on the 14th that its CEO Choi Eun-seok and HDC Hyundai EP CEO Jung Joong-gyu, along with executives from both companies, signed the “Joint Venture Agreement (JVA) for the Establishment of a Bio-Compounding Joint Company” at the CJ Talent Institute in Jung-gu, Seoul. The two companies plan to invest approximately 24 billion KRW in facilities at HDC Hyundai EP’s factory located in Jincheon, Chungbuk, aiming to start full-scale production in the third quarter of next year.

The joint venture will develop compounding solutions and mass-produce bioplastics using biodegradable materials such as PHA, which only CJ CheilJedang can produce domestically, as well as PLA, PBAT, and cellulose. They plan to develop products and technologies that replace existing petrochemical raw materials with bio-based raw materials or mix biodegradable materials for applications in everyday fields such as food packaging and automotive interiors.

With CJ CheilJedang’s top-tier microbial fermentation and purification technology combined with HDC Hyundai EP’s eco-friendly material compounding capabilities, significant business synergy is expected. Additionally, CJ CheilJedang plans to expand its white bio business area to include eco-friendly bioplastics beyond PHA and secure mass production capabilities. HDC Hyundai EP will be able to stably supply differentiated eco-friendly materials, including PHA.

Choi Eun-seok, CEO of CJ CheilJedang, said, “The combination of CJ CheilJedang’s accumulated bio-technology and marketing capabilities with HDC Hyundai EP’s competitiveness will create various synergies in the eco-friendly compounding business,” adding, “We are confident that we can provide a ‘plastic circular economy solution’ that meets the ESG goals of global customers and the government’s carbon neutrality policy.”

As the joint venture gets on track, CJ CheilJedang’s efforts to strengthen its white bio business competitiveness are expected to accelerate. CJ CheilJedang is building a dedicated PHA production line with an annual capacity of 5,000 tons at its bio factory in Pasuruan, Indonesia, targeting full production next year. The company plans to expand its white bio business portfolio by pursuing collaborations with various global companies related to bio materials in the future.

HDC Hyundai EP, a petrochemical specialist affiliate of the HDC Group, has established itself as a core affiliate of the group through its compounding materials and plastics business used in automobiles, home appliances, and building materials. Since the inauguration of new CEO Jung Joong-gyu last year, the company has been pursuing business diversification to secure new growth engines and recently entered the eco-friendly materials market in earnest by acquiring the PPS business unit from SK Chemicals, which produces high value-added materials that can replace metals.

This content was produced with the assistance of AI translation services.